Jamb Accounts - Principles of Accounts Questions - Partnership Accounts
Question 6:
The document setting out the regulations regarding shares, meetings and internal organization of a company is known as
- A Memorandum of association
- B Article of association
- C Prospectus
- D Company law
Question 7:
Why are adjustments in the profit and loss account necessary?
- A To cover some expenses of the following year
- B To ascertain the actual expenses incurred and income earned during the year
- C To show the provision made during the year
- D To show the total expenses paid and income received during the year
Question 8:
Which of the following is a strong feature of partnership?
- A The life of the partnership is generally assumed to be indefinite
- B The owners are liable personally for all debts of the business
- C The transfer of ownership interest is frequent and easy to accomplish
- D The partnership is complex to form because of many legal and reporting requirements
Question 9:
Interest on a partner's drawings is debited to the
- A Partners current account and credited to the profit and loss appropriation account
- B Profit and loss appropriation account and credited to the partner's current account
- C Profit and loss account and credited to the partner's current account
- D Partner's current account and credited to the profit and loss account
Question 10:
A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be
- A Credited to land and building account
- B Debited to asset revaluation account
- C Credited to asset revaluation account
- D Credited to profit and loss appropriation account